Report: U.S. Senator proposes $70 billion funding increase to support Trump's key mineral agenda

According to media reports on the 4th, bipartisan U.S. senators plan to introduce legislation on Wednesday to increase the loan cap of the Export-Import Bank of the United States by $70 billion to $205 billion and extend its authorization for ten years, aiming to expand financing capacity and fully support President Donald Trump’s strategic agenda in key mineral sectors.

The proposal is jointly initiated by Republican Senator Kevin Cramer and Democratic Senator Mark Warner, coinciding with the Trump administration’s accelerated efforts to reorganize supply chains. Kevin Cramer told the media that Trump is fully committed to funding this agency and fully recognizes its value at the commercial level. This legislative effort closely aligns with the White House’s “Project Vault” launched this week, which aims to use Export-Import Bank financing to establish commercial inventories of critical minerals.

Buoyed by this policy favorable to the industry, market expectations for related sectors have rapidly heated up, with anticipated government capital injections expected to directly boost domestic mineral supply chains. In pre-market trading following the announcement, U.S. rare earth stocks generally rose, with U.S. Rare Earth up 17.46% but the pre-market gains narrowed; U.S. Antimony rose 5.3%, and Critical Metals and MP Materials also recorded significant gains.

This move marks an important shift in U.S. industrial policy—strengthening the resilience of domestic manufacturing supply chains through policy-based financial tools. Analysts point out that without new legislative authorization, the funding for the Export-Import Bank will expire at the end of this year. In the current increasingly complex global trade environment, the agency is seen as a key tool to enhance U.S. export competitiveness, balance trade deficits, and secure strategic resources.

Expansion of Financing Capacity and Policy Shift

According to the proposed legislation, lawmakers seek to significantly raise the Export-Import Bank’s loan limit from the current $135 billion to $205 billion. Kevin Cramer noted that without reauthorization and capital increase, the U.S. would be at a disadvantage in competition with other developed countries.

He emphasized that this is not merely about trade balance but “adding a tool to our toolbox,” helping U.S. exporters win orders overseas through favorable financing terms and turning previously “unfeasible” deals into “feasible.”

Trump’s attitude toward the agency has undergone a notable shift. During his 2016 campaign, he criticized the Export-Import Bank as “unnecessary,” but by 2019, he supported its reauthorization. Cramer analyzed that Trump uses tariffs as a “big stick,” while the Export-Import Bank’s financing provides the “carrot” to facilitate trade agreements. Out of business acumen, the president has come to deeply understand the practical utility of the agency in facilitating deals and balancing trade.

Commercial Inventory Program and Corporate Participation

As previously reported by Wall Street Watch, the Trump administration launched a strategic reserve program called “Project Vault” on Monday. The program totals $12 billion, including $10 billion in debt financing from the Export-Import Bank and $1.67 billion in private capital. The project aims to establish the first commercial inventory of critical minerals for the U.S. private sector, covering materials like gallium, cobalt, and others vital to automotive, tech, and aerospace manufacturing.

Currently, more than a dozen industry giants, including General Motors (GM), Alphabet’s Google, and Boeing, are involved. In terms of operation, commodity traders such as Hartree Partners LP, Traxys North America LLC, and Moker Energy Group will handle procurement, while manufacturers will pay upfront costs and bear holding costs. This mechanism is designed to stabilize the market, allowing participating companies to draw from inventory during supply disruptions, but they must also commit to repurchasing an equivalent amount in the future to smooth price fluctuations.

Supply Chain Security and Trade Balance

The core logic of this legislation and funding injection is to address vulnerabilities in global supply chains. Kevin Cramer pointed out that beyond military sales, pharmaceuticals, and food, energy and critical minerals are areas where the Export-Import Bank can play a key role. By supporting projects domestically and among allies, the U.S. aims to reduce dependence on external single sources of supply, especially in light of last year’s export restrictions on certain critical rare earths, making this need particularly urgent.

The Export-Import Bank previously announced that the $10 billion in financing will be used specifically to establish domestic raw material reserves for downstream industries like automakers. This move is not only to avoid balance sheet shocks from soaring nickel prices after the Russia-Ukraine conflict but also to fundamentally reshape the global mineral and battery supply chain landscape, ensuring the U.S. industrial base has sufficient buffers against external shocks.

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